The 12th time was a charm.
In seven of the past 11 sessions, the
threatened the 3900 level, but stopped short. Monday, that level gave way, sending traders into a buying/short-covering spree that took the Comp to the 3990 level, and 4000 appears likely to come next.
Many Internet stocks, however, did not fare as well, as
took yet another shot at the Net sector with the second in what most assuredly will not be the last article on the burn rates of Internet stocks. Companies prominently mentioned went into a tailspin.
The Nasdaq finished the session up 129.29 points, or 3.4%, at 3989.85, gaining steam immediately after the previous resistance level was breached.
TheStreet.com Internet Sector
index closed up 13.07, or 1.5%, at 909.59. Gains most likely were a delayed reaction to the growing likelihood that the
will not raise interest rates when it meets next week.
As usual, investors' favorites led the way higher.
closed up 21 13/16, or 18%, at 138 1/4;
Check Point Software
was up 13 1/8, or 6%, to 226 7/8; and
ended up 8 3/8, or 7%, at 124 3/16.
Internet infrastructure plays were on fire as well.
added 15 1/2, or 15%, to 115 7/8;
Copper Mountain Networks
added 6 3/8, or 8%, to 88 7/8; and
finished up 17 5/16, or 15%, to 136 5/16.
More traditional Internet plays were not as fortunate as the rest of tech, as investors appeared to shun the sector after
provided a detailed list of Net stocks and how quickly they were going through money. While the article did note that Internet companies went through their money more slowly in the first quarter than the fourth, it still listed more than 60 companies that could run out of money in the next 12 months.
Among some of the stocks mentioned that were hurt the most,
closed down 1 9/16, or 23%, to 5 3/16;
fell 3/4, or 23%, to 2 1/2;
dropped 15/32, or 8%, to 5 1/4;
slipped 3/16, or 10%, to 1 11/16;
lost 5/8, or 15%, to 3 3/8;
Pilot Network Services
fell 1 5/8, or 12.5%, to 11 3/8;
fell 7/32, or 12%, to 1 19/32; and
tumbled 3/8, or 12%, to 2 3/4.